There is a typical misconception in South Africa today that stokvels are a finance tool used mainly by those in a lower income bracket.
The 2017 Old Mutual Savings and Investment Monitor, however, shows that there’s been an 11% increase in stokvel members among those earning R40 000 per month or more, from 46% in 2009 to 57% in 2017.
This means that stokvels are progressing steadily from “…villages to cities, from money under mattresses to savings accounts” and now, increasingly from mere savings to instruments of investment.
As a stokvel member, you want to ensure that you get the most out of your modern savings solution and means needing to grow your money. Here are 3 key things to keep in mind when moving your stokvel from a savings vehicle to becoming an investment engine:
Get the right advice
Start with people you trust and who have a proven track record and expertise in finance. If you want to stay on track and reach your goals with your money, this is critical. Someone with the right expertise will help you and your stokvel group to create a savings and investment strategy that will take you further on your #WealthBuildingMadeSimple journey.
Find ways to get more out
You and your stokvel need to prioritise returns as much as you do savings. If members are not getting more out of their investments, then they might as well be saving money under a mattress. How can you cut down on transaction fees and other costs? (Did you know for example, that by transacting on the StokFella platform, you will be paying lower fees than you would with any of the leading SA banks?) How can you choose the best investment products to suit your stokvel’s needs and appetite for risk? Perhaps you don’t know the answers to these questions. That brings us to the important point number 3…
Empower your members
Knowledge is power. Knowing which investment solution to go for and what kind of returns to expect is part of financial education. Stokvel workshops with reputable industry-players like StokFella will go a long way to enhancing the financial literacy of your members and ensuring that they all play an active role in achieving the groups’ overall goals.
To find out more about the award-winning stokvel solution offered by StokFella and how to get started, visit www.stokfella.com/faqs and keep an eye on our social media channels for details of our upcoming workshops in an area near you.